96
96 96
DS News tracks the latest and most
relevant industry surveys and data to
keep you in the know. This month, let's
take a look at the hottest and the coldest
markets for single-family rentals in the
United States according to cap rate.
The cap rate is calculated by dividing
an SFR property's net annual income
(gross annual income from rent minus
operating expenses) by that property's
market value. Example: $1,200 monthly
rent computes to a $14,400 gross annual
income, minus $4,400 in annual operating
expenses, equaling a net annual income of
$10,000. The market value of the home is
$120,000, therefore $10,000 / $120,000 =
a cap rate of 8.3 percent. We've mapped
out the 10 metros with the highest cap
rate and the 10 metros with the lowest cap
rate for SFR investing.
Source: HomeUnion
PARTING SHOT
WRAP YOUR HEAD AROUND THE MARKET'S LEADING INDICATORS
96
Source: HomeUnion
96 96 96
Memphis, Tennessee
Oklahoma City, Oklahoma
Pittsburgh, Pennsylvania
Cincinnati, Ohio
Houston, Texas
Indianapolis, Indiana
Cleveland, Ohio
Baltimore, Maryland
Milwaukee, Wisconsin
Tampa, Florida
San Francisco, California
San Jose, California
Orange County, California
Los Angeles, California
New York, New York
Seattle, Washington
Oakland, California
San Diego, California
Sacramento, California
Portland, Oregon
THE HOTTEST AND COLDEST SFR
MARKETS FOR INVESTORS
7.3%
6.9%
6.4%
6.4%
6.1%
6.0%
5.9%
5.9%
5.9%
5.9%
2.7%
2.7%
3.0%
3.2%
3.5%
3.5%
3.5%
3.6%
3.6%
3.9%
San Francisco, California San Francisco, California
San Jose, California San Jose, California
Orange County, California Orange County, California Orange County, California
Los Angeles, California Los Angeles, California
New York, New York New York, New York
Seattle, Washington Seattle, Washington
Oakland, California Oakland, California
San Diego, California San Diego, California San Diego, California
Sacramento, California Sacramento, California
Portland, Oregon Portland, Oregon
MARKETS FOR INVESTORS
2.7%
2.7%
3.0%
3.2%
3.5%
3.5%
3.5%
3.6%
3.6%
3.9%
